Floatel Believes Firm is Well-Positioned to Tap Business Opportunities

Floatel International Ltd., an accommodation and construction support vessel provider, believed it is well-positioned to capitalize on business opportunities despite the tough industry environment currently, a senior executive told Rigzone on the sideline of a naming ceremony for the company's latest accommodation semisub "Floatel Triumph" at Keppel FELS' yard in Tuas, Singapore Friday.

"Most accommodation fleet (in the industry) were built in 1980s," Floatel CEO Peter Jacobsson said, a development that stands in contrast to his company's relatively youthful fleet of five units -- the first of which came into service in 2010.

He added that the firm will "survive the trough" in the market where planned projects have been cancelled or delayed due to the prolonged downturn in global oil prices that had rendered such developments commercially non-viable.

"All our vessels continue to receive strong demand and have high utilization rates. In the current oil price environment, sustaining production levels is key for oil companies, and accommodation units are required as they reduce downtime during periods of essential maintenance," Jacobsson said separately in a press release Friday.

The newbuild Floatel Triumph, the latest addition to the fleet, is expected to depart soon from Singapore to the Ichthys field offshore Australia for a one-year assignment with Japan's Inpex Corp., the operator of the Ichthys liquefied natural gas (LNG) project.

Floatel's three other accommodation units are under contracts.

Floatel Victory is now in operations for BP at Clair Ridge Field, West of Shetland, UK, while Floatel Superior and Floatel Endurance are being mobilized for work by Premier Oil and Chevron for UK's offshore Solan field and Western Australia's Wheatstone field, respectively.

Meanwhile, Floatel Reliance has recently completed a contract with Brazil's Petrobras and the accommodation semisub is now demobilizing. "We are deciding on contracts (for Floatel Reliance)," Jacobsson told Rigzone.


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